FORMER Utusan Malaysian employees may take legal action against Utusan Melayu Group Bhd for failing to make the first voluntary separation scheme (VSS) payment due on December 25, said Deputy Human Resources Minister Mahfuz Omar.

Mahuz said he was informed the union workers had given the company until Monday to pay up.

“They have given Utusan until end of the month and thereafter they will lodge a report to the Labour and Industrial Relations Departments,” he said.

Some 700 employees agreed to leave the Umno mouthpiece under the VSS introduced in September.

Umno owns a 49.77% stake in Utusan.

On December 24, Utusan announced the first instalment due was postponed to an unspecified date.

In a circular obtained by The Malaysian Insight, Utusan indicated it did not have enough funds to settle the first tranche of payments as it had yet to receive full payment for the sale of its assets.

“Utusan should not have relied on the proceeds from the sale of its assets to pay the workers,” Mahfuz told The Malaysian Insight.

The Sena MP said the ministry would assist the laid-off employees to find work.

“We have called employers from several firms, and the former Utusan staff can choose the work they feel suitable for them.

“Umno doesn’t seem to care what happens and it is now up to us, the government, to assist them,” he said.

Under the VSS,  those were paid below RM5,000 a month will receive six weeks’ pay for every year of service or number of years left before retirement, whichever is less.

Those earning between more than RM5,000 and less than RM10,000 monthly will get five weeks’ pay, while those who drew more than RM10,000 monthly will get a month’s pay.

The money is to be paid in 12 monthly instalments, starting this month. – December 28, 2018.